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EXHIBIT 10.84
GUARANTY
GUARANTY, dated as of November 14, 1996 (as amended, modified or
supplemented from time to time, this "Guaranty"), made by each of the
undersigned (each, a "Guarantor" and, collectively, the "Guarantors"). Unless
otherwise defined herein, capitalized terms used herein shall the meanings
provided in the Credit Agreement referred to below.
WHEREAS, NextHealth, Inc. (the "Borrower") and AP LOM LLC, a Delaware
limited liability company (the "Lender"), have entered into a Credit Agreement,
dated as of November 14, 1996 (as amended, modified or supplemented from time to
time, the "Credit Agreement"), providing for the making of Loans to the
Borrower;
WHEREAS, each Guarantor is a Subsidiary of the Borrower;
WHEREAS, it is a condition precedent to the making of Loans under the
Credit Agreement that each Guarantor shall have executed and delivered to the
Lender this Guaranty; and
WHEREAS, each Guarantor will obtain benefits from the incurrence of
Loans by the Borrower under the Credit Agreement and, accordingly, desires to
execute this Guaranty in order to satisfy the condition precedent described in
the preceding paragraph and induce the Lender to make Loans to the Borrower;
NOW, THEREFORE, in consideration of the foregoing and other benefits
accruing to each Guarantor, the receipt and sufficiency of which are hereby
acknowledged, each Guarantor hereby makes the following representations and
warranties to the Lender and hereby covenants and agrees with the Lender as
follows:
Section
1. Guaranty. Each Guarantor hereby, jointly and severally, irrevocably and
unconditionally guarantees the full and punctual payment when due (whether at
stated maturity, by acceleration or otherwise), of (x) the principal of,
interest on and all other amounts owing in respect of the Loans made to the
Borrower under the Credit Agreement and (y) all other obligations and
liabilities owing by the Borrower to the Lender under the Credit Agreement
(including, without limitation, indemnities) and the other Loan Documents to
which the Borrower is a party, whether now existing or hereafter incurred under,
arising out of or in connection with the Credit Agreement or any such other Loan
Document and the due performance and compliance by the Borrower with the terms
of the Credit Agreement and such other Loan Documents (the foregoing being
herein referred to as the "Guaranteed Obligations"); provided, however, that the
maximum
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amount payable by each Guarantor hereunder shall not exceed an amount equal to
the largest amount that would not render such Guarantor's obligations hereunder
subject to avoidance under Section 548 of the United States Bankruptcy Code or
any equivalent provision of the law of any state. Subject to the proviso in the
preceding sentence, each Guarantor understands, agrees and confirms that the
Lender may enforce this Guaranty up to the full amount of the Guaranteed
Obligations against each Guarantor without proceeding against any other
Guarantor, the Borrower, any security for the Guaranteed Obligations, or under
any other guaranty covering all or a portion of the Guaranteed Obligations. All
payments made by each Guarantor hereunder shall be made on the same basis as
payments by the Borrower under Section 3.3 of the Credit Agreement.
Section 1. Waiver. Each Guarantor hereby absolutely, unconditionally
and irrevocably waives, to the fullest extent permitted by law, (i) promptness,
diligence, notice of acceptance and any other notice with respect to this
Guaranty, (ii) presentment, demand of payment, protest, notice of dishonor or
nonpayment and any other notice with respect to the Guaranteed Obligations,
(iii) any requirement that the Lender protect, secure, perfect or insure any
security interest or Lien or any property subject thereto, and (iv) any other
action, event or precondition to the enforcement of this Guaranty or the
performance by the Guarantor of the obligations hereunder.
Section 2. Guaranty Absolute. (a) Each Guarantor guarantees that, to
the fullest extent permitted by law, the Guaranteed Obligations will be paid or
performed strictly in accordance with their terms, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Lender with respect thereto.
(b) No invalidity, irregularity, voidability, voidness or
unenforceability of the Credit Agreement, the Notes, or any other Loan Document
or any other agreement or instrument relating thereto, or of all or any part of
the Guaranteed Obligations or of any security therefor shall affect, impair or
be a defense to this Guaranty.
(c) This Guaranty is one of payment and performance, not collection,
and the obligations of each Guarantor under this Guaranty are independent of the
obligations of any other Guarantor, any other guarantor or the Borrower under
the Loan Documents, and a separate action or actions may be brought and
prosecuted against any Guarantor to enforce this Guaranty, irrespective of
whether any action is brought against the Borrower or whether the Borrower is
joined in any such action or actions.
(d) The liability of each Guarantor hereunder shall be absolute and
unconditional irrespective of:
(i) any change in the manner, place or terms of payment or
performance, and/or any change or extension of the time of payment or
performance of, renewal or alteration of, any of the Guaranteed
Obligations, any security therefor, or any liability
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incurred directly or indirectly in respect thereof, or any other
amendment or waiver of or any consent to departure from the Credit
Agreement or the Notes or any other Loan Document, including any
increase in the Guaranteed Obligations resulting from the extension of
additional credit to the Borrower or any of its subsidiaries or
otherwise;
(ii) any sale, exchange, release, surrender, realization upon
any property by whomsoever at any time pledged or mortgaged to secure,
or howsoever securing, all or any of the Guaranteed Obligations, and/or
any offset thereagainst, or failure to perfect, or continue the
perfection of, any Lien in any such property, or delay in the
perfection of any such Lien, or any amendment or waiver of or consent
to departure from any other guaranty for all or any of the Guaranteed
Obligations;
(iii) any exercise or failure to exercise any rights against
the Borrower or others (including any Guarantor);
(iv) any settlement or compromise of any Obligations, any
security therefor or any liability (including any of those hereunder)
incurred directly or indirectly in respect thereof or hereof, and any
subordination of the payment of all or any part thereof to the payment
of any obligation (whether due or not) of the Borrower to creditors of
the Borrower other than the Guarantors;
(v) any manner of application of Collateral, or proceeds
thereof, to all or any of the Guaranteed Obligations, or any manner of
sale or other disposition of any Collateral for all or any of the
Guaranteed Obligations or any other assets of the Borrower or any of
its Subsidiaries;
(vi) any change, restructuring or termination of the existence
of the Borrower or any of its Subsidiaries; or
(vii) any other agreements or circumstance of any nature
whatsoever which might otherwise constitute a defense available to, or
a discharge of, this Guaranty and/or obligations of any Guarantor
hereunder, or a defense to, or discharge of, the Borrower or any other
person or party relating to this Guaranty or the obligations of any
Guarantor hereunder or otherwise with respect to the Loans, or other
financial accommodations to the Borrower.
(e) The Lender may at any time and from time to time (whether or not
after revocation or termination of this Guaranty) without the consent of, or
notice (except as shall be required by applicable statute and cannot be waived)
to, the Guarantor, and without incurring responsibility to the Guarantors or
impairing or releasing the obligations of any Guarantors hereunder, apply any
sums by whomsoever paid or howsoever realized to any Guaranteed Obligation
regardless of what Guaranteed Obligations remain unpaid.
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(f) This Guaranty shall continue to be effective or be reinstated, as
the case may be, if claim is ever made upon the Lender for repayment or recovery
of any amount or amounts received by the Lender in payment or on account of any
of the Guaranteed Obligations and the Lender repays all or part of said amount
by reason of any judgment, decree or order of any court or administrative body
having jurisdiction over the Lender or the respective property of each, or any
settlement or compromise of any such claim effected by the Lender with any such
claimant (including the Borrower), then and in such event each Guarantor agrees
that any such judgment, decree, order, settlement or compromise shall be binding
upon such Guarantor, notwithstanding any revocation hereof or the cancellation
of any note (including the Notes) or other instrument evidencing any obligation
of the Borrower, and such Guarantor shall be and remain liable to the Lender
hereunder for the amount so repaid or recovered to the same extent as if such
amount had never originally been received by the Lender.
Section 3. Continuing Guaranty. This Guaranty is a continuing one and
shall (i) remain in full force and effect until the indefeasible payment and
satisfaction in full of the Guaranteed Obligations, (ii) be binding upon each
Guarantor, its successors and assigns, and (iii) inure to the benefit of, and be
enforceable by, the Lender and its successors, transferees and assigns. All
obligations to which this Guaranty applies or may apply under the terms hereof
shall be conclusively presumed to have been created in reliance hereon.
Section 4. Representations, Warranties and Covenants. Each Guarantor
hereby represents, warrants and covenants to and with the Lender that:
(a) Such Guarantor (i) is a duly organized and validly
existing corporation in good standing under the laws of the
jurisdiction of its organization, (ii) has the corporate power and
authority to own its property and assets and to transact the business
in which it is engaged and (iii) is duly qualified and authorized to do
business and is in good standing in all jurisdictions where it is
required to be so qualified and where the failure to be so qualified
could reasonably be expected to have a material adverse effect on the
assets, properties, liabilities and condition (financial or otherwise)
on the Borrower or the Borrower and its Subsidiaries taken as a whole.
(b) Such Guarantor has the corporate power and authority to
execute, deliver and carry out the terms of this Guaranty and each
other Loan Document to which it is a party and has taken all necessary
corporate action to authorize the execution, delivery and performance
by it of each such Loan Document. Such has duly executed and delivered
this Guaranty and each other Loan Document to which it is a party and
constitutes the legal, valid and binding obligation of the Guarantor,
and is enforceable against such Guarantor in accordance with its terms,
except as enforcement thereof may be subject to the effect of any
applicable bankruptcy, insolvency, reorganization, moratorium or
similar law affecting creditors' rights generally, and general
principles of equity (regardless of whether such enforcement is sought
in a proceeding in equity or at law).
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(c) No consent, approval, authorization or other action by,
and no notice to or of, or declaration or filing with, any governmental
or other public body, or any other Person, is required for the due
authorization, execution, delivery and performance by any Guarantor of
this Guaranty or the consummation of the transactions contemplated
hereby.
(d) The execution, delivery and performance by each Guarantor
of this Guaranty do not and will not violate or otherwise conflict with
any term or provision of any material agreement, instrument, judgment,
decree, order or any statute, rule or governmental regulation
applicable to each Guarantor or result in the creation of any Lien upon
any of its properties or assets pursuant thereto.
Section 5. Expenses. The Guarantors jointly and severally agree to
reimburse the Lender for any sums, costs, and expenses which the Lender may pay
or incur pursuant to the provisions of this Guaranty or in negotiating,
executing, perfecting, defending, protecting or enforcing this Guaranty or in
enforcing payment of the Guaranteed Obligations or otherwise in connection with
the provisions hereof, including court costs, collection charges, travel
expenses, and reasonable attorneys' fees, together with interest thereon as
specified in Section 12 hereof.
Section 6. Terms. (a) All terms defined in the Uniform Commercial Code
in effect in the State of New York on the date hereof (the "UCC") and used
herein shall have the meanings as defined in the UCC, unless the context
otherwise requires.
(b) The words "include," "includes" and "including" shall be
deemed to be followed by the phrase "without limitation".
(c) All references herein to Sections and subsections shall be
deemed to be references to Sections and subsections of this Guaranty
unless the context shall otherwise require.
Section 7. Amendments and Modification. No provision hereof shall be
modified, altered or limited except by written instrument expressly referring to
this Guaranty and to such provision, and executed by the party to be charged.
Section 8. Subordination; Waiver of Subrogation Rights. Any
indebtedness of the Borrower now or hereafter held by any Guarantor is hereby
subordinated to the indebtedness of the Borrower to the Lender; and such
indebtedness of the Borrower to any Guarantor, if the Lender, after an Event of
Default has occurred and is continuing, so requests, shall be collected,
enforced and received by such Guarantor as trustee for the Lender and be paid
over to the Lender on account of the indebtedness of the Borrower to the Lender,
but without affecting or impairing in any manner the liability of such Guarantor
under the other provisions of this Guaranty. Without limiting the generality of
the foregoing, each Guarantor hereby agrees with the Lender that it will not
exercise any right of subrogation which it may at any time otherwise have as a
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result of this Guaranty (whether contractual, under Section 509 of the United
States Bankruptcy Code, or otherwise) until all Guaranteed Obligations have been
paid in full in cash.
Section 9. Remedies Upon Default; Right of Set-Off. (a) Upon the
occurrence and during the continuance of any Event of Default, the Lender may,
without notice to or demand upon the Borrower or the Guarantors, declare any
Guaranteed Obligations immediately due and payable, and shall be entitled to
enforce the obligations of the Guarantors hereunder.
(b) Upon such declaration by the Lender, the Lender is hereby
authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by the Lender to or for the credit
or the account of any Guarantor against any and all of the obligations
of such Guarantor now or hereafter existing under this Guaranty,
whether or not the Lender shall have made any demand under this
Guaranty and although such obligations may be contingent and unmatured.
The Lender agrees promptly to notify such Guarantor after any such
set-off and application, provided that the failure to give such notice
shall not affect the validity of such set-off and application. The
rights of the Lender under this Section 10 are in addition to other
rights and remedies (including other rights of set-off) which the
Lender may have.
Section 10. Statute of Limitations. Each Guarantor waives, to the
fullest extent permitted by law, the benefit of any statute of limitations
affecting its liability hereunder or the enforcement thereof. To the extent
permitted by law, any payment by the Borrower or other circumstance which
operates to toll any statute of limitations as to the Borrower shall operate to
toll the statute of limitations as to each Guarantor.
Section 11. Interest. All amounts payable from time to time by each
Guarantor hereunder shall bear interest at the interest rate per annum specified
in Section 2.4 of the Credit Agreement.
Section 12. Rights and Remedies Not Waived. No act, omission or delay
by the Lender shall constitute a waiver of its rights and remedies hereunder or
otherwise. No single or partial waiver by the Lender of any default hereunder or
right or remedy which it may have shall operate as a waiver of any other
default, right or remedy or of the same default, right or remedy on a future
occasion.
Section 13. Admissibility of Guaranty. Each Guarantor agrees that any
copy of this Guaranty signed by such Guarantor and transmitted by telecopier for
delivery to the Lender shall be admissible in evidence as the original itself in
any judicial or administrative proceeding, whether or not the original is in
existence.
Section 14. Notices. All notices, requests and demands to or upon the
Lender or any Guarantor under this Guaranty shall be in writing and given as
provided in the Credit
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Agreement (with respect to any Guarantor, to the address of the Borrower set
forth in the Credit Agreement).
Section 15. Counterparts. This Guaranty may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original and all of
which shall together constitute one and the same agreement.
SECTION 16. CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL; ETC. (A) ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS GUARANTY,
EACH GUARANTOR HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY,
GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID
COURTS. EACH GUARANTOR HEREBY IRREVOCABLY WAIVES, IN CONNECTION WITH ANY SUCH
ACTION OR PROCEEDING, (I) TRIAL BY JURY, (II) TO THE EXTENT IT MAY EFFECTIVELY
DO SO UNDER APPLICABLE LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING
OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH
RESPECTIVE JURISDICTIONS AND (III) THE RIGHT TO INTERPOSE ANY SET-OFF,
COUNTERCLAIM OR CROSS-CLAIM (UNLESS SUCH SET-OFF, COUNTERCLAIM OR CROSS-CLAIM
COULD NOT, BY REASON OF ANY APPLICABLE FEDERAL OR STATE PROCEDURAL LAWS, BE
INTERPOSED, PLEADED OR ALLEGED IN ANY OTHER ACTION).
(b) Each Guarantor irrevocably consents to the service of
process of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by certified mail, postage
prepaid, to such Guarantor at its address determined pursuant to
Section 15 hereof.
(c) Nothing herein shall affect the right of the Lender to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against any Guarantor in any other
jurisdiction.
(d) Each Guarantor hereby waives presentment, notice of
dishonor and protests of all instruments included in or evidencing any
of the Guaranteed Obligations, and any and all other notices and
demands whatsoever (except as expressly provided herein).
SECTION 17. GOVERNING LAW. THIS GUARANTY AND THE GUARANTEED OBLIGATIONS
SHALL BE GOVERNED IN ALL RESPECTS BY THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS EXECUTED
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AND TO BE PERFORMED IN SUCH STATE, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW
PRINCIPLES THEREOF.
Section 18. Captions; Separability. (a) The captions of the Sections
and subsections of this Guaranty have been inserted for convenience only and
shall not in any way affect the meaning or construction of any provision of this
Guaranty.
(b) If any provision of this Guaranty shall be held to be
invalid, illegal or unenforceable by any court of competent
jurisdiction, such holding shall not invalidate or render unenforceable
any other provision hereof.
Section 19. Acknowledgment of Receipt. Each Guarantor acknowledges
receipt of a copy of this Guaranty and each of the other Loan Documents.
Section 21. Deficiency. Each Guarantor jointly and severally agrees
that it shall be and remain liable hereunder with respect to any deficiency
remaining after foreclosure of any mortgage or security interest securing the
Guaranteed Obligations, whether or not the liability of any obligor for such
deficiency is discharged pursuant to statute or judicial.
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IN WITNESS WHEREOF, each Guarantor has duly executed or caused this
Guaranty to be duly executed as of the date first above written.
Address: SIERRA TUSCON, INC.
00000 X. Xxxx xxx Xxx Xxxxxxx
Xxxxxx, XX 00000 By:/s/ Xxxxxx X Xxxxx
------------------
Attention: President Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Address: SIERRA TUSCON AC, INC.
00000 X. Xxxx xxx Xxx Xxxxxxx
Xxxxxx, XX 00000 By:/s/ Xxxxxx X Xxxxx
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Attention: President Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Address: SIERRA TUSCON
00000 X. Xxxx xxx Xxx Xxxxxxx EDUCATIONAL MATERIALS
Xxxxxx, XX 00000 (S.T.E.M.), INC.
Attention: President By:/s/ Xxxxxx X Xxxxx
--------------------
Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Address: SIERRA HEALTHSTYLES, INC.
00000 X. Xxxx xxx Xxx Xxxxxxx D/B/A MIRAVAL
Xxxxxx, XX 00000
Attention: President By:/s/ Xxxxxx X Xxxxx
----------------------
Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
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Address: ONSITE WORKSHOPS, INC.
00000 X. Xxxx xxx Xxx Xxxxxxx
Xxxxxx, XX 00000
By:/s/ Xxxxxx X Xxxxx
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Attention: President Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Address: NEXTHEALTH WATER
00000 X. Xxxx xxx Xxx Xxxxxxx RESOURCES, INC.
Xxxxxx, XX 00000
Attention: President By:/s/ Xxxxxx X Xxxxx
---------------------
Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Address: SOFTEN REALTY, L.L.C.
00000 X. Xxxx xxx Xxx Xxxxxxx
Xxxxxx, XX 00000
Attention: President By: NEXTHEALTH, INC.,
a Member
By:/s/ Xxxxxx X Xxxxx
----------------------
Name: Xxxxxx X Xxxxx
Title: Corporate Secretary
Accepted and Agreed to:
AP LOM LLC
By: AP XX XXX LLC, its
Managing Member
By Kronus Property, Inc.
By: /s/ Xxxxxx X Xxxxxxxxx
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Name: Xxxxxx X Xxxxxxxxx
Title: Vice President
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